Lithuania Defense Market - Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025-2030

Lithuania Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Lithuanian defense spending is driven by a modernization of its armed forces with the aim of better countering a potential invasion from Russia which has been exacerbated by the invasion of Ukraine. Prior to the Russian invasion of Ukraine in 2021, the country's defense budget recorded $1.3 billion. Following the invasion, the 2022 budget saw a substantial increase of $325 million from $1.3 billion to $1.7 billion, representing a percentage of GDP increase from 1.6% to 2.3%. The trend of high defense budget increases continued through to 2025, with a total defense budget of $3.6 billion and a 2021-25 CAGR of 29.4%. Infrastructure spending saw a particularly high increase during this time, increasing from $32 million in 2021 to $ 593 million in 2025, reflecting a CAGR of 107.3%, largely driven by increased basing needs for the Lithuanian Land Force’s 1st Division and the increasing presence of the German Army in Lithuania. Although at a slower pace than during the historic period of 2021-25, defense expenditure remains forecast to increase at a CAGR of 10.8% between 2026-30, with the 2030 budget forecast to stand at $7.9 billion. Acquisition, RDT&E and infrastructure spending are anticipated to register significant growth during this time to $3.59 billion, $0.13 billion, and $1.742 billion respectively, reflecting a CAGR of 12.2%, 12% and 12.6% for each.

Key Highlights

• The threat from Russia, modernization and expansion of the armed forced, and ensuring the country meets its NATO spending obligations are key factors driving defense expenditure
• Major ongoing procurement programs include the M142 HIMARS and ATACMS missile, the UH-60M Black Hawk helicopter, and the Mobile Short-Range Air Defense System.

Report Scope

This report offers a detailed analysis of Lithuania's defense market, with market size forecasts covering the next five years. It also offers insights into the strategy, security environment and defense market dynamics of the country. Various sections covered in the report are as follows:

• Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
• Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
• Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
• Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
• Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2024. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
• Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
• Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
• Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.

Reasons to Buy

• Determine prospective investment areas based on a detailed trend analysis of the Lithuania defense market over the next five years
• Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Lithuania market and identify the opportunities offered.
• Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
• Identify the major threats that are driving the Lithuania defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
• Channel resources by focusing on the ongoing programs that are being undertaken by the Lithuanian government
• Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available